French real estate rental prices face “unexpected resistance”

Real estate prices in France show a slight decrease of 0.3% in the second quarter according to the French Notaries-INSEE better than forecasted by the Association of Notaries. Prices only contracted by 0.3% on average. In Ile-de-France (Greater Paris), existing homes prices decreased by 0.1% in the second quarter, while flats and houses located in the regions decreased by 0.3% and 0.4% respectively.

Many experts are predicting a return to the record prices in September according to the information revealed in pre-sales contracts. Prices are expected to reach €8,570 per square meter before coming back to €8,530 in October. Except for these minor fluctuations, prices are remain stable in the capital.

The property market is still suffering from the slowdown in the volume of sales.  The second quarter ended with 34,800 properties sold which represent a 21% drop compared with 2011. The market is weighed down by the buyers who are more selective because of the high prices, though there is hope for the sales volume to be boosted by the ultra-low French mortgage interest rates on offer.

Read the original article in French here